Rush Enterprises A Inc (RUSHA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		3.51	3.93	3.95	4.50	3.61
DOH	days	103.84	92.93	92.31	81.15	101.17

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.51
= 103.84

The days of inventory on hand (DOH) for Rush Enterprises A Inc have shown fluctuations over the past five years. In 2023, the company had an average of 103.84 days of inventory on hand, an increase from the previous year's 92.93 days. This implies that the company held inventory for a longer period in 2023 compared to 2022. The increase in DOH could indicate potential issues such as overstocking or slowing inventory turnover.

Comparing 2023 to 2021 and 2020, the company's DOH also increased from 92.31 days and 81.15 days, respectively, suggesting a trend of holding inventory for a longer duration over the years. However, the DOH in 2023 was lower than in 2019, when it stood at 101.17 days.

Overall, the upward trend in Rush Enterprises A Inc's days of inventory on hand indicates a potential inefficiency in managing its inventory levels. It may be necessary for the company to reevaluate its inventory management strategies to optimize inventory turnover and reduce the carrying costs associated with excessive inventory holdings.